Robocalls? Not for PayPal customers

San Jose, Calif. – PayPal Inc, which came under public scrutiny and criticism after announcing a new privacy policy that would require users to allow prerecorded or automated “robocalls” and texts, has backpedaled on that requirement.



In a statement posted on the PayPal site, general counsel and company secretary Louise Pentland cleared up “confusion” around the new policy, which takes effect July 1.



“In sending our customers a notice about upcoming changes to our user agreement, we used language that did not clearly communicate how we intend to contact them,” Pentland said in the statement. “Unfortunately, this language caused confusion and concern with some of our customers.”



PayPal will still use prerecorded or automated calls and texts, primarily in anti-fraud efforts, notifying customers about account activity, and collecting debts. However, PayPal will not use this type of calling/texting for marketing purposes without prior user consent, and will also allow users to revoke their consent for other types of automated calls and texts (such as debt collection) by contacting customer service.



PayPal will email customers about this change in the privacy policy, and the statement said PayPal is also “working proactively with regulators to clarify that our focus is on our customers, on consumer protection and on doing the right thing.”



The only option previously listed for users who do not want to be bound by the new terms was to close their account prior to July 1, 2015. The New York attorney general’s office had notified both PayPal and parent company eBay that users need to be allowed to opt out of prerecorded or automated calls and texts. PayPal and eBay are expected to split into two separate companies on July 17.